§ Mr. LetwinTo ask the Secretary of State for the Environment, Transport and the Regions what instruction or guidance his Department has given to the Housing Corporation on the attribution by housing associations of service charges to(a) tenants in service accommodation and (b) other tenants. [37115]
§ Mr. Raynsford[holding answer 31 March 1998]: Under Section 36(3) of the Housing Act 1996, draft guidance prepared by the Housing Corporation on the management of housing accommodation by registered social landlords (mostly housing associations) is approved by my right hon. Friend the Secretary of State for the Environment, Transport and the Regions before being 598W issued by the Corporation. Under Section 36(2) of the Act, guidance may include the principles upon which rents should be determined.
Following consultation, my right hon. Friend approved management guidance issued by the Housing Corporation in December 1997 which included guidance on rents and service charges. This advises registered social landlords that they should endeavour to charge rents that are below equivalent market rent levels, are affordable to those in low paid employment and that do not increase each year by more than the guideline limit of the increase in the Retail Price Index plus 1 per cent.
I have asked the Housing Corporation to contact the hon. Member to answer any specific concerns about service charges.